Overview
- The U.S. Court of Appeals for the Federal Circuit extended a suspension on Thursday that allows the government to keep collecting the 10% global tariff while legal challenges move through the courts.
- The levy was imposed in February under Section 122 of the Trade Act of 1974 as a temporary response after the Supreme Court struck down most of the administration’s earlier IEEPA-based tariffs.
- A May ruling from the U.S. Court of International Trade had barred the tariffs for two small importers and the state of Washington, prompting the government’s appeal and the appeals-court stay.
- The Section 122 duty is set to expire at the end of July unless Congress acts to extend it, and the administration is preparing new actions under Section 301 and Section 232 to build longer-lasting tariff coverage.
- The dispute has wider effects because the government is processing about $166 billion in refunds from the invalidated IEEPA tariffs and businesses and consumers face higher costs that the administration has tried to offset with targeted tax cuts.